Are Investors Dangerously Happy?

Despite weak economic data, stocks continue their improbable run. That could be reason for concern.

One old saw in the investment world says that a market that goes up on bad news is quite bullish. We need not look any further than this morning's news that a drop in government spending had led to negative gross domestic product in the fourth quarter. After a small hit on the news, stocks actually were in the black by lunchtime (only to drift lower after the Federal Reserve released a statement on the economy).

Given that many technical indicators were already stretched to the max, we have to hand it to the bulls. Kudos....